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- Financial intermediaries act to reallocate (move) money from borrowers to savers.
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- A mortgage 105m is a loan that a person makes to purchase a house. Table 19.11 provides a list of the mortgage interest rate for several different years and the rate of inflation for each of those years. In which years would it have been better to be a person borrowing money from a bank to buy a home? In which years would it have been better to be a bank lending money?12. Which of the following is most likely to cause an increase in demand for loanable funds? (A) Banks fail across the nation, and are unable to return their depositors’ money. (B) The Financial Post releases a widely-read article, claiming that consumer and business confidence have declined. (C) The government provides a large tax credit for those who save money in banks. (D) The government reduces taxes on businesses, making investment more profitable.\\Assumes that commercial banks have a 20% fixed liquidity ratio. When Mr. Farhan Yaseen deposits PKR 1000 into a Bank. By the credit creation process, what is the maximum amount of loans that the banks can create? required calculation in the paper
- - Which of the following is not one of the characteristics or properties that make something appropriate to be used as money? Divisible Portable Recognizable Investible DurableD4) Discuss the role and functions of financial markets and institutions in a modern economy. Why are financial intermediaries so important to a well-functioning economy?What does the Fisher Effect tell us about the bond and loanable funds markets? I will rate accordingly. Typed answer please.
- 1. Financial institutions in the U.S. economy Suppose Edison would like to use $1,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab—a practice known as _______ (debt/equity) finance. Buying a bond issued by NanoSpeck would give Edison _______ (a claim to partial ownership in/ an IOU, or promise to pay, from) the firm. In the event that NanoSpeck runs into financial difficulty, ______ (Edison and the other bondholders/ the stockholders) will be paid first. Suppose instead Edison decides to buy 100 shares of NanoSpeck stock. Which of the following statements are correct? Check all that apply. a)The price of his shares will rise if NanoSpeck issues additional shares of stock. b)The Dow Jones Industrial Average is an example of a stock exchange where he can purchase NanoSpeck…5. Define financial system and then discuss the difference between financial markets and financial intermediaries. Medium answerGive only typing answer with explanation and conclusion If a bank expects interest rates to go up in six months and it currently has a negative rate-sensitive six-month gap (RSA - RSL), what actions should it take, if any, to preserve or increase its net interest income (NII)?
- Following are some ways by which some of the challenges in the financial system in Ghana may be Promote confidence in the economy I)How can this be done?2. Disposable income Group of answer choices increases when net taxes increase. increases when saving decreases. decreases when saving increases. increases when income increases.Please discuss the following. 1. Financial markets are institutions and systems that facilitate transactions in all types of financial claims. 2. What is the importance of financial markets in a nation's economy? Discuss fully.